Choosing a Credit Card for Your Business

For small business owners, now is actually a good time to research how a business credit card can benefit operations, or to re-evaluate existing business credit card plans to take advantage of best rates and current offers in the marketplace. 


Basically, there are two options for business credit cards - small business and corporate credit cards. The decision on which option to choose is based in large part on the size of the business and who is responsible for the debt. 

As the names imply, a corporate credit card is for large businesses and corporations and the burden of debt typically falls on the corporation. A business credit card is intended for smaller businesses with sole-proprietors and the burden of debt is on the owner. Unless the business is producing more than $2 million annually in gross income, a corporate credit card isn’t an option.

A business credit card is very similar to a personal credit card and carries a credit limit and minimum monthly payments. Business owners and any employee who will use the card will typically undergo a credit check.

BBB offers tips for choosing and implementing a new business credit card approach:

Do your research. Many banks and credit card companies are making various offers, with some attractive perks that may fit nicely with your business needs. But offers run the gamut, so be choosy. You’ll want to find out about offers from both your local banks and national credit card companies.

Don’t get burned by special offers. As noted, there are many offers and plans available for small business owners, but pay specific attention to business credit card plans with introductory offers for 0% APR. While this may be a good option for an immediate, high-end purchase to support your business, you need to find out what the conditions for the APR are – under what conditions will it rise, and what are your options if it does rise. Beware of getting stuck with a high APR after the introductory period.

Consider the rewards. Many cards will offer perks for both you and your employees including discounts with preferred vendors and airlines, as well as rewards points. 

Lay the ground rules. Make sure your employees know exactly what can and cannot be charged on the credit card. Some cards will let you adjust the credit limit on individual employee cards, as well as limit where the cards can be used. 

For additional tips on managing your business’s finances, go to bbb.org.

Is a Smartphone Credit Card Processor Right for Your Business?

These days, no matter how large or small the business, employees don’t even need to be near their store’s credit card processor to make a credit transaction with their customer. Using smartphone credit card readers, businesses have the capability of taking their sales to the next level, but Better Business Bureau is advising business owners to make sure that such a system is right for their business.


For businesses looking to add the credit card reader capability to their sales, BBB recommends the following tips:

Do your research. Just like a landline-based credit card system, you’ll need a merchant account to process payments, a scanner device to read the card, and software (app) to make it run. Don’t skimp on research. Start with your bank or your credit card service for suggestions on recommended services and devices. Check out all vendors at www.bbb.org. Ask for references.

Choose the right combination. Your smartphone merchant account might interface with your existing landline-based account, and that will make life easier. Build from there; find the app you feel comfortable using that has the features you want. There are over a hundred apps available for different smartphones; each is usually compatible with a number of different swiping devices. The reader itself is the last step (and the easiest to replace or exchange).

Read the fine print. Using a smartphone credit card reader might be a great 
way to increase your sales while on the road. However, make sure to read the fine print for the smartphone app to make sure that you won’t be charged while you’re not using it.

Offer the customer service your shoppers expect.Some shoppers may not be familiar with this kind of payment method. Be sure to offer them the option of having a receipt emailed to them, or even offer to print the receipt there with a separate smartphone printer. This will reduce the hassle should your customer want to return the product.

Beware of scams! As with any emerging technology, scammers are figuring out how to exploit vulnerabilities. Don’t buy the devices or apps from vendors you don’t know.